H&R Block 2025 Scenarios
Questions with Accurate
Answers
Alberto Jimenez is a degree candidate. For 2018, his tuition was $5,000, his other
required course fees were $1,200, and his room and board were $2,700. Alberto
received a $2,500 scholarship that does not specify the expenses to which it must
be applied. How much, if any, of his scholarship income is taxable? correct answer
None of Alberto's scholarship is taxable. He is a degree candidate where his
$5,000 tuition expense and his other required course fees of $1,200 exceeded his
$2,500 scholarship received.
Alice Keeler is divorced. Her daughter, Janet (5), lived with her all year. Alice
would have been able to claim the dependency exemption for Janet except that
she signed a waiver allowing her ex-husband to do so. While she was working,
Alice sent her daughter to the Kiddy Care Center. Can she claim CDCC (Child and
Dependent Care Credit)? correct answer Yes. Alice qualifies under the divorced
parents rules to claim the Child and Dependent Care Credit, because she is the
custodial parent.
Anita (42) is a married taxpayer. Her husband, Mark (43), has not lived with her
since 2015 and Anita is considered unmarried for tax purposes, filing head of
household. Anita's earned income and AGI was $28,478, all from wages. She had
no other income. Anita has one dependent daughter, Samantha (14). Anita and
Samantha lived together in 2018, and no one else lived with them. Both are U.S.
citizens. Can she claim EITC?` correct answer Yes. Anita would receive $1,893 in
EITC.
Antoine Rimbald is a degree candidate. For 2018, his tuition was $8,300, his
required equipment fees and books cost $1,850, and his room and board were
,$4,200. Antoine received a $15,000 scholarship that does not specify the
expenses to which it must be applied. How much, if any, of his scholarship income
is taxable? correct answer $4,850 of Antoine's scholarship is taxable. Antoine's
tuition, fees, and book costs total $10,150. The portion of his scholarship money
in excess of this is taxable [$15,000 - $10,150 = $4,850 taxable scholarship]. The
cost of his room and board is not a qualified educational expense, and the portion
of scholarship funds used to pay these expenses is generally taxable.
Barbara Bui is a part-time student and is not working toward a degree. For 2018,
her tuition was $1,500, and her books cost $145. Barbara lives at home with her
parents and does not have room and board expenses. Barbara received a tuition
scholarship of $1,000. How much, if any, of her scholarship income is taxable?
correct answer All of Barbara's scholarship is taxable, because she is not a degree
candidate.
Barbara is a law clerk for Your County. Which type of retirement plans would she
contribute to through her employer? correct answer 457 retirement plans are
mainly available to government employees.
Carolyn earned $52,000 as a full-time employee in 2018. Due to procrastination
and denial, she did not prepare her 2018 income tax return until June 23, 2019.
Carolyn did not file the return until August 1, 2019. She did not request an
extension of time to file. Her return showed a balance due of $1,500. What is her
penalty? correct answer The IRS assesses a late filing penalty for four months.
Carolyn's penalty is $300 [5% x 4 x $1,500].
Christine Williams' husband, Henry, was disabled and unable to care for himself
for the entire year. Christine hired a nurse to care for him in their home while she
was at work. They will file a joint return. Can they claim the CDCC? correct answer
Yes. Christine and Henry may claim the Child and Dependent Care Credit, because
Henry is incapable of self-care.
, Colin has a successful consulting business, and had a net profit of $86,394 on his
Schedule C. How much self-employment tax will he pay? correct answer $12,207.
His net profit is $86,394 × 92.35% = $79,785; $79,785 × 15.3% = $12,207.
Crystal's husband, Charlie (31), was deployed in May of 2018. Crystal (30) paid
70% of the cost of maintaining a home for their daughter, Amethyst (9). Can
Crystal file as head of household? correct answer Charlie's deployment is
considered a "temporary absence," and therefore they are not considered to have
lived apart for the last six months of the year. Thus, Crystal does not meet the
"considered unmarried" requirements.
Curtis (71) and Shirley (64) are married filing jointly with gross income of $25,370.
What is their gross income filing requirement amount? correct answer $25,300
(This is the gross income filing requirement for married filing jointly taxpayers
when one taxpayer is age 65 or older).
Dale (25) is single. His brother, Jeff (27), lived with him for all of 2018. Jeff earned
$3,100, all from wages, and had no other income. Dale provided more than half of
Jeff's support. Jeff is not permanently or totally disabled. No one else lived with
Dale. Can Dale claim Jeff as a qualifying relative? correct answer Jeff meets all of
the tests for a qualifying relative.
Dan paid $1,000 for a seat at a charity event held to benefit his state university.
The value of this was $100. How much may he deduct on his tax return? correct
answer $900. Dan may deduct up to the face value of the ticket [$1,000 - $100 =
$900).
Darrell (12) was claimed by his aunt, Felicia, and his older brother, Gerald. Darrell
lived with both Felicia and Gerald for four months. He lived with Felicia for five
Questions with Accurate
Answers
Alberto Jimenez is a degree candidate. For 2018, his tuition was $5,000, his other
required course fees were $1,200, and his room and board were $2,700. Alberto
received a $2,500 scholarship that does not specify the expenses to which it must
be applied. How much, if any, of his scholarship income is taxable? correct answer
None of Alberto's scholarship is taxable. He is a degree candidate where his
$5,000 tuition expense and his other required course fees of $1,200 exceeded his
$2,500 scholarship received.
Alice Keeler is divorced. Her daughter, Janet (5), lived with her all year. Alice
would have been able to claim the dependency exemption for Janet except that
she signed a waiver allowing her ex-husband to do so. While she was working,
Alice sent her daughter to the Kiddy Care Center. Can she claim CDCC (Child and
Dependent Care Credit)? correct answer Yes. Alice qualifies under the divorced
parents rules to claim the Child and Dependent Care Credit, because she is the
custodial parent.
Anita (42) is a married taxpayer. Her husband, Mark (43), has not lived with her
since 2015 and Anita is considered unmarried for tax purposes, filing head of
household. Anita's earned income and AGI was $28,478, all from wages. She had
no other income. Anita has one dependent daughter, Samantha (14). Anita and
Samantha lived together in 2018, and no one else lived with them. Both are U.S.
citizens. Can she claim EITC?` correct answer Yes. Anita would receive $1,893 in
EITC.
Antoine Rimbald is a degree candidate. For 2018, his tuition was $8,300, his
required equipment fees and books cost $1,850, and his room and board were
,$4,200. Antoine received a $15,000 scholarship that does not specify the
expenses to which it must be applied. How much, if any, of his scholarship income
is taxable? correct answer $4,850 of Antoine's scholarship is taxable. Antoine's
tuition, fees, and book costs total $10,150. The portion of his scholarship money
in excess of this is taxable [$15,000 - $10,150 = $4,850 taxable scholarship]. The
cost of his room and board is not a qualified educational expense, and the portion
of scholarship funds used to pay these expenses is generally taxable.
Barbara Bui is a part-time student and is not working toward a degree. For 2018,
her tuition was $1,500, and her books cost $145. Barbara lives at home with her
parents and does not have room and board expenses. Barbara received a tuition
scholarship of $1,000. How much, if any, of her scholarship income is taxable?
correct answer All of Barbara's scholarship is taxable, because she is not a degree
candidate.
Barbara is a law clerk for Your County. Which type of retirement plans would she
contribute to through her employer? correct answer 457 retirement plans are
mainly available to government employees.
Carolyn earned $52,000 as a full-time employee in 2018. Due to procrastination
and denial, she did not prepare her 2018 income tax return until June 23, 2019.
Carolyn did not file the return until August 1, 2019. She did not request an
extension of time to file. Her return showed a balance due of $1,500. What is her
penalty? correct answer The IRS assesses a late filing penalty for four months.
Carolyn's penalty is $300 [5% x 4 x $1,500].
Christine Williams' husband, Henry, was disabled and unable to care for himself
for the entire year. Christine hired a nurse to care for him in their home while she
was at work. They will file a joint return. Can they claim the CDCC? correct answer
Yes. Christine and Henry may claim the Child and Dependent Care Credit, because
Henry is incapable of self-care.
, Colin has a successful consulting business, and had a net profit of $86,394 on his
Schedule C. How much self-employment tax will he pay? correct answer $12,207.
His net profit is $86,394 × 92.35% = $79,785; $79,785 × 15.3% = $12,207.
Crystal's husband, Charlie (31), was deployed in May of 2018. Crystal (30) paid
70% of the cost of maintaining a home for their daughter, Amethyst (9). Can
Crystal file as head of household? correct answer Charlie's deployment is
considered a "temporary absence," and therefore they are not considered to have
lived apart for the last six months of the year. Thus, Crystal does not meet the
"considered unmarried" requirements.
Curtis (71) and Shirley (64) are married filing jointly with gross income of $25,370.
What is their gross income filing requirement amount? correct answer $25,300
(This is the gross income filing requirement for married filing jointly taxpayers
when one taxpayer is age 65 or older).
Dale (25) is single. His brother, Jeff (27), lived with him for all of 2018. Jeff earned
$3,100, all from wages, and had no other income. Dale provided more than half of
Jeff's support. Jeff is not permanently or totally disabled. No one else lived with
Dale. Can Dale claim Jeff as a qualifying relative? correct answer Jeff meets all of
the tests for a qualifying relative.
Dan paid $1,000 for a seat at a charity event held to benefit his state university.
The value of this was $100. How much may he deduct on his tax return? correct
answer $900. Dan may deduct up to the face value of the ticket [$1,000 - $100 =
$900).
Darrell (12) was claimed by his aunt, Felicia, and his older brother, Gerald. Darrell
lived with both Felicia and Gerald for four months. He lived with Felicia for five
